TE Connectivity Ltd. announced unaudited consolidated earnings results for the first quarter ended December 29, 2017. For the quarter, the company reported net sales of $3,480 million compared to $3,063 million a year ago. Operating income was $581 million compared to $495 million a year ago. Income from continuing operations before income taxes was $561 million compared to $460 million a year ago. Loss from continuing operations was $39 million or $0.11 per basic and diluted share compared to income of $406 million or $1.13 per diluted share a year ago. Net loss was $40 million or $0.11 per diluted share compared to income of $409 million or $1.14 per diluted share a year ago. Net cash provided by operating activities was $350 million compared to $404 million a year ago. Capital expenditures were $241 million compared to $130 million a year ago. Free cash flow was $127 million compared to $218 million a year ago.

The company provided earnings guidance for the second quarter ending March 30, 2018 and fiscal year of 2018. For the fiscal second quarter of 2018, the company expects net sales of $3.55 billion to $3.65 billion, reflecting an increase of 12% on an actual basis and 6% on an organic basis year over year at the mid-point. Diluted EPS from continuing operations are expected to be $1.18 to $1.22, including net restructuring, acquisition-related and other charges of $0.15. The company expects adjusted EPS of $1.33 to $1.37 which represents a 13% improvement at the mid-point versus the second quarter of 2017. Net sales growth (GAAP) is to be in the range of 10% to 13%. Organic net sales growth (non-GAAP) is to be in the range of 5% to 8%. For the second quarter, it expects adjusted effective tax rate to be approximately 19%.

For the full year, the company expects net sales of $14.1 to $14.3 billion, reflecting 8% actual and 5% organic growth at the mid-point versus the prior year. Diluted EPS from continuing operations are expected to be $3.61 to $3.71, including net restructuring, acquisition-related and other charges of $0.37, and a tax-related charge of $1.42. The company expects adjusted EPS of $5.40 to $5.50, reflecting 13% growth at the mid-point compared to fiscal year 2017. Net sales growth (GAAP) is to be in the range of 8% to 9%. Organic net sales growth (non-GAAP) is to be in the range of 5% to 6%. Based upon this very strong start for the full year, the company is raising annual sales and adjusted earnings per share guidance. Organic growth expectations, it is raising from 4% to 5% for the year, reflecting stronger first half momentum and the second half of fiscal year that is in line with prior view. The company raising outlook for reported sales from 6% to 8%, reflecting 100 basis points of the organic growth increase and the remaining 100 basis points from the impact of currency exchange rates. On an adjusted EPS perspective, expectations, it is raising $0.22 to $5.45 per share, and that represents 13% growth year-over-year. It expects the full year tax rate in the 19% to 20% range, and it now expect taxes to come in at the lower end of for that range.